Post-Secondary Development Fund Annual Audited Account
In 2004, the Government of the HKSAR granted a start-up loan to The Chinese University of Hong Kong -Tung Wah Group of Hospitals Community College Limited (“CUTW”), which was jointly formed by Tung Wah Group of Hospitals (“TWGHs”) and The Chinese University of Hong Kong, to build and refurbish the college premises located at Kowloon Lot Numbers 9519, 9520 and 11171.
Following the cessation of operation of CUTW in 2013, the above college premises and the outstanding start-up loan were taken up by TWGHs on 11 December 2013 with the approval by the Government of the HKSAR for the operation of Tung Wah College Limited (“TWC”) of which TWGHs is its sole member.
Under the arrangement for the property and loan transfer, TWC is granted a lease for the use of the above college campuses on a cost-recovery basis. The whole rental proceeds received by TWGHs from TWC for such lease is credited to a post-secondary development fund (“the Fund”) earmarked for the repayment of the above indebtedness, the building maintenance expenses of the said campuses and future development of TWC.
According to the audited account of the Fund dated 19 September 2014, the rental income from 11 December 2013 to 31 March 2014 received by TWGHs from TWC was $5,260,742 and such amount was fully used in the repayment of the above loan from the Government of the HKSAR. The Fund balance as at 31 March 2014 was NIL.